The Warehousing Development Regulatory Authority (WDRA) and the State Bank of India (SBI) have signed an MoU to promote a loan product called Produce Marketing Loan, which is exclusively designed for funding against e-NWRs (electronic Negotiable Warehouse Receipts) with features such as Nil processing fee, No Additional collateral and attractive interest rates. This loan product is expected to have a positive impact on small and marginal farmers by improving rural liquidity and increasing farmer’s income.
Overview
A Memorandum of Understanding (MoU) was signed between the Warehousing Development Regulatory Authority (WDRA) and the State Bank of India (SBI) to establish a new loan product to support small and marginal farmers. The loan, called Produce Marketing Loan, will entirely fund against e-NWRs (electronic Negotiable Warehouse Receipts). This loan has several benefits for farmers such as no processing fee and no additional collateral required and will have attractive interest rates. The MoU aims to promote awareness about the loan product and its benefits and to improve agricultural pledge finance in India. This loan will have a far-reaching impact on small and marginal farmers by preventing distress sale and releasing better prices for their produce. The MoU signing event also includes a brief discussion on the importance of post-harvest pledge financing using warehouse receipts and the challenges faced by lending institutions in this sector. WDRA assured their full regulatory support in improving trust among stakeholders.
The news is mainly aimed to benefit small and marginal farmers in India by providing them with a new loan product that is exclusively designed for funding against e-NWRs with various attractive features. These features are meant to make it more accessible for small and marginal farmers to obtain a loan and improve their agricultural pledge finance, thus preventing distress sale and releasing better prices for the produce. It is also aimed to provide information about the benefits of this loan product to depositors and improve agricultural pledge finance in India by doing further outreach activities.
Important Information
- The Warehousing Development Regulatory Authority (WDRA) and the State Bank of India (SBI) have signed a Memorandum of Understanding (MoU).
- The MoU is to promote a new loan product called Produce Marketing Loan.
- This loan is exclusively designed for funding against e-NWRs (electronic Negotiable Warehouse Receipts).
The loan product has features such as:
- Nil processing fee
- No Additional collateral
- Attractive interest rates
- The goal of the MoU is to increase awareness of the benefits of this loan product and to improve agricultural pledge finance in India.
- The implementation of this loan product is expected to have a significant impact on farmer’s growth by increasing farmer’s income and improving rural liquidity.
- The event also discussed the importance of post-harvest pledge financing using warehouse receipts and the challenges faced by lending institutions in this sector.
- WDRA has committed to providing full regulatory support to improve the trust among stakeholders.
Conclusion
The MoU signed between the WDRA and SBI is a significant step for small and marginal farmers in India. The Produce Marketing Loan is designed to improve agricultural pledge finance and prevent distress sales, with features such as no processing fee and attractive interest rates. The MoU aims to increase awareness and improve agricultural pledge finance in India. The event also highlighted the significance of post-harvest pledge financing through warehouse receipts as well as the obstacles that lending institutions confront in this area. WDRA’s support in improving trust among stakeholders is a positive step towards the success of this loan product.
Note: The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. Pesticides are a considerable risk of loss in crops and viewers are advised to do their own research before making any decisions.
